Markakis became a free agent after the Baltimore Orioles declined to pick up their mutual $17.5 million option on him for 2015, giving the 31-year-old a $2 million buyout instead.
The Orioles continued to negotiate with Markakis and his family reportedly wanted to stay in Baltimore.
Markakis has spent his entire nine-year career with the Orioles. He was drafted seventh in 2003 and joined the team in 2006.
In 155 games this year, he hit .276 with 14 home runs, 50 RBI and a .342 on-base percentage. Markakis has a career .290 average and .358 on-base percentage with 141 home runs and 658 RBI.
Markakis is coming off the six-year, $66.1 million extension he signed in 2009, a deal which paid him $15 million in 2014.
On Monday, the Orioles also lost free agent Nelson Cruz, who reportedly agreed to a four-year, $57 million deal with the Seattle Mariners.
- Molly Geary